But it might have been the nearly $5 billion in debt it shouldered that was the company's undoing.

Debt payments eroded its profits, and limited the amount of resources that Toys R Us had to invest in updating its stores and website.

Toys R Us filed for Chapter 11 bankruptcy protection in September, and hoped the company could restructure, emerging as a more streamlined company with a more manageable debt load.

But holiday sales were far worse than expected, likely dashing the retailer's hopes of avoiding selling the chain, or shutting down.

Toys R Us's UK operations have already started to unravel. The company acquired joint administrators – the UK version of bankruptcy trustees – in February, but no buyers have emerged.

While the administrators said in a statement that they “remain open’’ to possible bids, they have in the meantime laid off 67 employees at the company's main office. And in the past few days, 25 stores marked for closure in the company’s bankruptcy plan have shut their doors. The remaining UK locations will be closed over roughly the next six weeks.